Silver Prices Muted Amid Market Assessment of US-Iran Tensions and Fed Outlook
Silver Prices Unchanged in India Amid Easing Geopolitical Tensions
Silver prices in India remained largely unchanged on Tuesday, as investors balanced the easing of tensions in the Middle East against lingering concerns over inflation and interest rates. MCX silver price was muted, down 0.17% at ₹2,65,685 per kg, while MCX gold price was also flat.
Spot silver edged up 0.2% to $74.92 per ounce, while spot gold remained flat at $4,484.49 per ounce as of 0048 GMT. U.S. gold futures also gained 0.2% to $4,514.30 per ounce. The muted movement in precious metals suggested that investors were waiting for clearer signals on both geopolitical developments and the future direction of monetary policy.
The key factors influencing market sentiment were Lebanon's announcement of a partial ceasefire between Hezbollah and Israel, and the upcoming U.S. economic indicators. Investors are closely watching the U.S. non-farm payrolls report and broader employment data scheduled for release later this week. These reports are expected to provide valuable insights into the strength of the labour market and the broader health of the U.S. economy.
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Market participants are also awaiting remarks from Federal Reserve policymakers. Their comments could offer fresh clues regarding the central bank's assessment of inflation risks and the likely path of future interest rates.
| Market | Current Price | Previous Price | Change |
|---|---|---|---|
| MCX Gold | ₹1,55,000 | ₹1,55,000 | 0% |
| MCX Silver | ₹2,65,685 | ₹2,66,000 | -0.17% |
| Spot Gold | $4,484.49 | $4,484.49 | 0% |
| Spot Silver | $74.92 | $74.69 | 0.2% |
| U.S. Gold Futures | $4,514.30 | $4,485.00 | 0.2% |
Renisha Chainani, Head - Research at Augmont, noted that for silver, a structural supply deficit alongside green-energy demand from solar and electric vehicles remains intact, providing durable medium-term support beneath the metal even as near-term volatility persists. Chainani is cautiously bullish on the precious metals, but persistent above-target annual inflation and a Fed firmly on hold cap near-term upside.
The next major catalysts to watch are Trump's approval of the Iran deal terms and the U.S. jobs report on June 6. Key technical levels to watch include:
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- COMEX Gold: Support $4,400–4,440; Resistance $4,620–4,650
- MCX Gold: Support ₹1,53,000–1,54,000; Resistance ₹1,60,000
- COMEX Silver: Support $71–72; Resistance $78–79
- MCX Silver: Support ₹2,62,000–2,63,000; Resistance ₹2,83,000
Investor Takeaway
Investors are waiting for clearer signals on geopolitical developments and monetary policy direction.
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